Smsa Treemont Acquis (GREY:SAQU)

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All | Deal Flow | Investor involvement | Liquidity Requirements | Reverse Merger Activity

Tuesday, May 24, 2011

Reverse Merger Activity

On May 13, 2011 Xiangrui became a public entity via a reverse merger transaction. 

Company Snapshot:

Producer of pharmaceutical- and food-grade refined corn products

Post Merger Share Calculation:

  •      530,612: Pre reverse merger outstanding shares
  • 12,363,885: Newly issued shares of Common Stock
  •      400,000:Shares from convertible notes associated with private placement

GeoTeam® best effort calculation of total post reverse merger shares assuming full conversions:  13,294,497

SHANDONG XIANGRUI PHARMACY CO., LTD.
STATEMENTS OF INCOME
                     
        Years Ended December 31  
    Notes   2010     2009  
        US$     US$  
Revenues
                    
Cornstarch
         32,989,848       12,779,162  
Glucose
         8,934,164       4,336,391  
Others
         129,117       —  
 
                
Total Revenues
         42,053,129       17,115,553  
 
                
 
                    
Cost of Sales
                    
Cornstarch
         28,754,128       11,489,453  
Glucose
         7,748,407       4,048,677  
Others
         83,978       —  
 
                
Total Cost of Sales
         (36,586,513 )     (15,538,130 )
 
                
 
                    
Gross Profit
         5,466,616       1,577,423  
 
                
 
                    
Operating Expenses
                    
Selling and distribution
         (1,003,500 )     (571,313 )
General and administrative
         (245,515 )     (753,023 )
 
                
 
                    
Total Operating Expenses
         (1,249,015 )     (1,324,336 )
 
                
 
                    
Interest Income
         30,316       28,982  
Interest Expenses
         (409,088 )     (278,179 )
Foreign Exchange Loss
         (28 )     —  
Gain from disposal of fixed assets
         90,663          
Other Income, net
         4,281       422,005  
 
                
 
                    
Income Before Income Tax Expenses
         3,933,745       425,895  
 
                
 
                    
Income Tax Expenses
   9     (1,021,064 )     (127,261 )
 
                
 
                    
NET INCOME
         2,912,681       298,634

Pro Forma Valuation: using  price and new share count

  • Trailing EPS: $0.22
  • Trailing P/E: TBD
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Liquidity Requirements
Our continued growth is dependent upon our ability to raise capital from outside sources and improvement of profitability.
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Deal Flow

On May 12, 2011, we entered into a share purchase agreement, (the “Share Purchase Agreement”), with New Fortress Group, Ltd. (the “Purchaser”), pursuant to which the Purchaser acquired 400,000 shares of our common at a purchase price of $.001 per share. As a result of this transaction, 930,612 shares of our common stock are currently issued and outstanding.

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Investor involvement

The shell participant ...

Since 1995, Mr. Halter has been the president and the sole stockholder of Halter Financial Group, Inc., a Dallas, Texas based consulting firm specializing in the area of mergers, acquisitions and corporate finance

...has been involved in this deal also have ties to several other ChinaHybrids:

  • AGAC
  • CAGC
  • CNGL
  • CPHI
  • CREG, spawned from a another china RTO (looks like failed), China Digital Wireless
  • ENHD
  • HKWO
  • SUTR
  • TBV
  • WWIN
  • YUII
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